Australia Leading Economic Index

Last Release

Oct 31, 2025

Actual

0.1

Units In

Frequency

Monthly

Next Release

Dec 19, 2025

Time to Release

27 Days 22 Hours

Highest	Lowest	Average	Date Range	Source
0.76 Nov 2020	-1.74 Apr 2020	0 %	1960-2025	Westpac-Melbourne Institute

The Westpac-Melbourne Institute Leading Index of Economic Activity combines a selection of economic variables that typically lead fluctuations in economic activity into a single measure that provides a reliable cyclical indicator for the Australian economy. The index includes the following components: S&P/ASX 200, dwelling approvals, US industrial production, RBA Commodity Prices Index (A$), aggregate monthly hours worked, Westpac-MI CSI expectations index, Westpac-MI Unemployment expectations index, yield spread (10Y bond – 90D bill). The index has a base value of 100 as of 1996.

Latest Updates

The Westpac–Melbourne Institute Leading Economic Index for Australia edged up 0.1% month-over-month in October 2025 after a flat reading in the previous month. The six-month annualized growth rate also improved, rising to 0.35% from 0.1%. After hovering around zero for much of the past six months, the index has begun to show modest momentum heading into year-end, with the October update indicating slightly above-trend growth in early 2026. Although the signal is mild, it aligns with expectations that activity will continue to strengthen through the rest of 2025 and into next year. Westpac economist Ryan Wells forecasts GDP growth to pick up from 1.8% currently to 2.4% in 2026. On interest rates, Westpac expects the RBA to keep the cash rate on hold until mid-2026, by which time easing inflation should be more evident. This would allow for potential rate cuts in May and August, returning policy to broadly neutral settings.